Fifth Third Bancorp · NASDAQ:FITB
Fifth Third Bancorp — Barclays Global Financial Services Conference 2018
16 slides from Fifth Third Bancorp's conference presentation, Sep 11, 2018
Slide 1: Barclays Global Financial Services Conference 2018
Barclays Global Financial Services Conference 2018 Greg D. Carmichael Chairman, President & Chief Executive Officer September 12, 2018 Exhibit 99.1
Slide 2: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS This communication contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 including, but not limited to, Fifth Third Bancorp’s and MB Financial, Inc.’s expectations or predictions of future financial or business perfo
Slide 3: Well-positioned franchise and focused footprint
$141BN Total Assets (#13)2 $93BN Total Loans 61% Commercial 39% Consumer $102BN Core Deposits $37BN AUM CET 1: 10.9% 116% Modified LCR ~54,000 fee-free ATMs 12Q18 earnings release; 2SNL Financial as of 2Q18 – U.S. based savings and commercial banks per regulatory filings; EOP loans including loans H
Slide 4: Strategic priorities for the company
Strategic priorities for the company 1 3 Implement remaining NorthStar initiatives and achieve standalone financial targets Continue to position company to pursue profitable organic growth opportunities 2 Successfully integrate MB Financial and realize expected financial benefits
Slide 5: Majority of NorthStar initiatives already completed
Majority of NorthStar initiatives already completed Balance sheet optimization Commercial Client Experience Initiative (CCEI) Capital markets platform upgrades Credit card product and analytical enhancements Personal lending partnership and organic rollout Corporate treasury management product enhan
Slide 6: Balance sheet optimization has reshaped our risk and return profile
Balance sheet optimization has reshaped our risk and return profile 2016 - 2017 actions to strengthen balance sheet: Exited $5BN in higher risk and lower return commercial relationships De-emphasized indirect auto with lower risk-adjusted returns, resulting in $3BN balance decline Limited CRE exposu
Slide 7: Expect to achieve standalone NorthStar targets
Expect to achieve standalone NorthStar targets Raised original ROTCE target over 300 bps to reflect rate hikes and tax law changes Standalone franchise momentum: Record commercial originations (2Q18) Record corporate banking fees (2Q18) Significant increase in consumer households driving strong depo
Slide 8: MB Financial acquisition: significant strategic value
MB Financial acquisition: significant strategic value Shareholder value creation with strong financial results Significantly enhances Chicago retail deposit market share2 Complementary business and commercial client focus $100K- 2MM $2- 5MM $5- 10MM $10- 20MM $20- 50MM $50- 100MM $100- 250MM $250- 5
Slide 9: MB Financial integration and financial update
MB Financial integration and financial update Integration update Regulatory application complete; waiting for approval MB shareholder vote scheduled for 9/18 ISS and Glass Lewis recommend FOR all proposals Chicago organizational structure announced; tapping combined strength of both management teams
Slide 10: MB acquisition: an important step to position our retail banking franchise for future growth
MB acquisition: an important step to position our retail banking franchise for future growth Improves percentage of deposits in markets with a top 3 share ~70% of deposits in markets with Top 3 market share % of bank’s deposits in a top 3 position in their markets + Source: 2017 FDIC deposit data, e
Slide 11: Retail network optimization: strategic rationale
Execution over a 36 month period In existing footprint only; no geographic expansion Reposition 100 - 125 branches from the Midwest to the Southeast Branch square footage 40 – 50% smaller than legacy network with a significantly shorter payback period Pursuing organic growth opportunities Key aspect
Slide 12: Strategic priorities for the company
Strategic priorities for the company 1 2 3 Implement remaining NorthStar initiatives and achieve standalone financial targets Successfully integrate MB Financial and realize expected financial benefits Continue to position company to pursue profitable organic growth opportunities Focused on top quar
Slide 13: Regulation G reconciliation
Regulation G reconciliation 1Assumes a 21% tax rate 91 90 Three Months Ended 1H18 June March 2018 2018 Net interest income (U.S. GAAP) $2,016 $1,020 $996 FTE Adjustment 7 4 3 Taxable equivalent net interest income $2,023 $1,024 $999 Taxable equivalent net interest income (annualized) $4,079.53038674
Slide 14: Strong liquidity profile
Strong liquidity profile $ millions – excl. Retail Brokered & Institutional CDs Unsecured debt maturities Heavily core funded Holding company: Modified LCR of 116% as of 2Q18 Holding Company cash as of June 30, 2018: $3.2B Cash currently sufficient to satisfy all fixed obligations in a stressed envi
Slide 15: Balance sheet positioning – 2Q18
Balance sheet positioning – 2Q18 Investment portfolio $13.1BN fix | $42.8BN float 1,2,3 Commercial loans1,2,3 Consumer loans1 Long-term debt4 $25.9BN fix | $10.2BN float 1 $9.4BN fix | $4.9BN float 4 57% allocation to bullet/ locked-out cash flow securities Yield: 3.20% Effective duration of 5.25 Ne
Slide 16: Interest rate risk management – 2Q18
Interest rate risk management – 2Q18 Estimated NII sensitivity profile and ALCO policy limits Estimated NII sensitivity with deposit beta changes Estimated NII sensitivity with demand deposit balance changes NII benefits from asset rate reset in rising rate environment: 58% of total loans are floati
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